Pirie v Ayling [2003] EWHC 9006 (Costs) (18 February 2003)

Pirie v Ayling [2003] EWHC 9006 (Costs) (18 February 2003)

An ATE insurance premium calculated as 20% of damages is not champertous, but such a calculation is inherently unreasonable and disproportionate in simple road accident cases; the recoverable premium is limited to £367.50 as a reasonable amount.

Citation
[2003] EWHC 9006 (Costs)
Parties
Claimant: Pirie; Defendant: Ayling
Jurisdiction
England and Wales
Judgment Date
18 February 2003
Procedural Posture
Costs Assessment Following Personal Injury Claim / Post Settlement Costs Determination
Outcome
Partially allowed
Legal Topics
After the Event Insurance, Champerty, Costs Recovery, Access to Justice Act 1999
Civil Procedure Insurance Law After the Event Insurance Champerty Costs Recovery Access to Justice Act 1999

Case Brief

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Parties

Pirie

Claimant

Ayling

Defendant

Procedural Posture

Costs Assessment Following Personal Injury Claim / Post Settlement Costs Determination

Legal Issues

  1. 1 Whether an ATE insurance premium calculated as 20% of damages is champertous
  2. 2 Whether the claimed ATE insurance premium is reasonable and proportionate

Ratio Decidendi

An ATE insurance premium calculated as 20% of damages is not champertous, but such a calculation is inherently unreasonable and disproportionate in simple road accident cases; the recoverable premium is limited to £367.50 as a reasonable amount.

Court Disposition

Partially allowed

Orders

  • The Defendant is to pay an ATE insurance premium limited to £367.50 (including IPT) as part of the Claimant's recoverable costs.